A Founder's Guide to Notes & SAFEs: Caps, Discounts & More | Dose 036

[@martinrandolph8220]

This is cleanest and clearest message regarding SAPS and SAFES on the web. Thank you. Keep dropping gems Steve!

[@yogawithkassandra]

Thank you!! So easy to understand.

[@zeidounmeksi9799]

Great video, but how much is the Cap at a fair market value for an early-stage startup with an MVP and no traction yet? thanks

[@stevebarsh7727]

It really depends! It all depends on what the market is willing to bear for you hence the term, "fair market value." In some industries, it may be $2m. In others $3m, $5m, or even higher. Depends on the team, the market you are going into, unique of the solution, etc.

[@davidalarco9917]

Great content! thanks for sharing the three only scenarios for uncapped SAFE´s. It makes sense. Valuation it is! Gotta polish this one over the weekend! Thanks. Steve

[@stevebarsh7727]

Glad you liked it and found it helpful! Thanks for watching @David!

[@jhb31554]

Great explanation on CAP. Possible for math examples?

[@mleo2999]

thanks; your slide says "conversation" instead of "conversion"

[@daverobau9656]

Excellent video, Steve! Keep ‘em coming.

[@nicojones4436]

This is great. You’re really great at this. If I understand it: it’s great.

[@MrJorgego1]

Question? A founder is presenting an uncapped SAFE, stating a Cap Safe agreement implies a potential valuation and would expose key new hires to fanton income tax on signing bonus shares based on this potential valuation which would be much more then current valuation filed with IRS…any experience with this scenario…any work around to this potential risk to new employees?

[@drallennazericonsultingadv185]

Typo at 2:47.. great content tx

[@DreamItVentures]

Thanks for pointing that out. Yes, it should be "CONVERSION"

[@arijitghosh2400]

For bookeeping purposes, how to value a safe.

[@ZAINAZAIDI]

Love the video Steve! Thank you

[@stevebarsh7727]

Glad you like it! Thanks so much for watching!

[@kchwophy]

Really helpful

[@thebrizzell]

But how do you make a SAFE

[@anilbangera1]

Excellent

[@MrTrainerSpeaker]

Towards the very end the host stated “an indication of an unsophisticated investor is being asked ‘what’s your exit strategy’ .” Why is this considered unsophisticated? Don’t investors need to know this?

[@VertexHero]

I'll admit I'm still a bit lost. Can anyone else explain? I could really use the help.